Market mood turned positive in line with a strong rally in Asian and European shares after a weak US data reinforced expectations of a delay in rate hike by the Federal Reserve.
Domestic auto stocks were in the limelight on hopes of a surge in sales during the festive season.
The 30-share BSE barometer index stayed in the positive terrain throughout the session and after recapturing the 27,000-level touched a high of 27,037.95. It finally settled 230.48 points or 0.86 percent higher at 27,010.14.
The gauge had lost around 300 points in the previous three sessions on disappointing set of second quarter numbers.
The 50-share NSE Nifty also recovered by 71.60 points or 0.88 percent to close at 8,179.50.
Tata Motors was the top Sensex gainer after surging 8.06 percent to close at a two-month high of Rs 380.70 as its Jaguar Land Rover unit reported a 3 percent jump in September sales.
Maruti Suzuki too surged 3.01 per cent while Hero MotoCorp gained 2.37 percent in anticipation of a rise in their sales during the festive season.
Other gainers included BHEL 3.02 percent, Tata Steel 2.94 percent, GAIL 2.16 percent, Coal India 2.14 percent, ONGC 2.04 percent, SBI 1.92 percent and Lupin 1.84 percent.
However, shares of M&M, Wipro, Hindalco, Hind Unilever, Cipla, NTPC, TCS and Infosys ended up to 0.86 percent lower.
Sectorally, the BSE auto index gained the most by rising 2.33 percent, followed by PSU 1.54 percent, oil&gas 1.51 percent, metal 1.40 percent, capital goods 1.22 percent and power 1.18 percent.


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